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Monday, 20 August 2007

Statutory Procedures: Adjustments to awards

Almost three years on, and we still haven't had any guidance on when awards should be increased by 10%, 50%, or somewhere in between, for failing to comply with the statutory dismissal procedures.

In Cex Ltd v Lewis, the EAT refused to lay down general guidelines but commented that it was appropriate for a tribunal to take into account the employer's ignorance of the statutory dismissal procedures when deciding to impose the minimum uplift of 10%.

The lack of guidelines is leading to inconsistent results; I have seen cases where a 50% uplift was awarded precisely because of the employer's ignorance of the law (rationalised as 'if they can't be bothered to learn how to act fairly...'). However, if the dismissal procedures are abolished, as the government intends, this may be a (relatively) short-lived problem.

[Thanks to Richard Linskell of Dawsons LLP, who acted for Cex Ltd. in this appeal, for telling me about the case]

Daniel Barnett is a barrister at Outer Temple Chambers, with over 15 years' experience defending companies facing employment tribunal claims and associated commercial disputes. He is listed as a leading employment barrister in the ‘Legal 500′, and described in the Times Law Supplement as having “carved out a strong reputation”.

Daniel regularly advises and represents large and small businesses in discrimination claims, TUPE problems, team moves, removal of confidential business information, and unfair dismissal disputes. He has been appointed as employment law advisor to Acas since 2004, and is the author or co-author of seven legal textbooks.